German GDP growth confirmed for first quarter

ToddBuell

The robust domestic economy drove German output growth in the first three months of the year, official data showed Friday, confirming its assessment made earlier this month.

In adjusted terms, the country's statistics office said that gross domestic product grew 0.8% on the quarter and 2.3% on the year, matching the initial estimate made last week. It was Germany's strongest quarterly output growth in three years, the office said.

Among major categories, gross capital formation made the strongest gains, growing 7.4% on the quarter. Construction investment grew 3.6%.

The data follow sentiment figures published Thursday that indicate a rebalancing of the Europe's largest economy away from exports, long the country's motor of growth, and toward the domestic economy.

A survey by data company Markit showed that domestic demand is playing a stronger role in Germany's economic expansion. The data also showed that German businesses hired additional workers for the seventh straight month.

German consumer sentiment is also strong, reflecting an environment of high income expectations, a strong labor market and low inflation.

Later Friday, the Munich-based Ifo institute is due to release its closely watched sentiment indicator. Experts polled by Dow Jones Newswires expect the lead indicator to ease slightly on the back of weaker expectations.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.